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In
the letter to Ticketmaster parent Live Nation Entertainment Inc,
Senator Amy Klobuchar voiced "serious concern about the state of
competition in the ticketing industry and its harmful impact on
consumers."
"Ticketmaster’s power in the primary ticket market insulates it
from the competitive pressures that typically push companies to
innovate and improve their services," added Klobuchar, who is
chair of a Senate subcommittee on antitrust issues. "That can
result in the types of dramatic service failures we saw this
week, where consumers are the ones that pay the price."
On Tuesday, Swift fans swarmed the Ticketmaster website and
encountered long wait times, with many unable to buy tickets.
Ticketmaster said the tour generated unprecedented demand and it
worked quickly to fix problems.
In her letter, Klobuchar asked Live Nation Chief Executive
Michael Rapino to answer a handful of questions, including how
much the company had spent to upgrade technology to handle
demand surges, and what percentage of high-profile tour tickets
were reserved for presales.
Ticketmaster did not immediately respond to requests for comment
on Klobuchar's letter.
Live Nation and Ticketmaster merged in a 2010 deal approved by
the Justice Department. The government can challenge a completed
merger but rarely does so. Klobuchar, in her letter, said she
had been skeptical of the combination at the time.
Ticketmaster has angered artists and fans for decades. In the
mid-1990s, the grunge band Pearl Jam decided to tour without
using Ticketmaster but found it too unwieldy and returned to the
service after 14 months.
(Reporting by Lisa Richwine. Editing by Gerry Doyle)
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